Atlas cycle industry, Hidden gem stock

Company profile:

 Map book Cycles (Haryana) Ltd. recently known as Atlas Cycle Industries (ACIL) began with the assembling of bike saddles in 1951 and delivered its first bike in 1952. From an unassuming start of 120 cycles each day the organization has made some amazing progress to turn into India's second-biggest cycle maker. It has units at Sonepat Sahibabad Rasoi and Gurgaon all in Haryana. Its joined assembling limit remains at a weighty 3.1 million cycles for every annum. It arose as the biggest exporter of bikes from India. New fare markets like Myanmar and South Africa were investigated in 1994-95. It has been sending out parts bikes and mopeds other than tapping the wellness gear market abroad. Its ISO-9002 accreditation is relied upon to support trades. The steel tube fabricating office at Gurgaon was extended from 25000 tpa to 50000 tpa. The extension was supported by a rights issue of NCDs in Nov.'94. This regressive joining assisted Atlas with stemming the benefit disintegration because of rising costs.It proceeded with its retrogressive coordination by setting up a 10000 tpa cold-rolled (CR) steel project (cost : Rs 14 cr) at Sonepat housed at the site utilized beforehand by its sulked unit. The organization has created and carried out a modern edge arrangement checking and rectifying apparatus by utilizing water driven bracing electronic detecting and show equipped for perusing mistakes upto 0.1 mm. Another plan for a paddling machine and a bike with front adaptive suspension have been created. Their models are being tested.The organization has granted its investors six extra issues somewhere in the range of 1966 and 1994. During 1995-96 new TANGO scope of extravagant bicycles covering SLR's CTB's ATB's and MTB's has been created. Organization has recently presented 'Laser' series of bikes. The paint application plant has been authorized.

 Chart book Cycles was established in 1950 by Janki Das Kapur, a man with a particular dream, to fabricate quality cycles at reasonable costs for his kindred Indians. From his unobtrusive beginnings, of building cycles in a shed in Sonepat, he set up his first processing plant perplexing, a 25-section of land issue, in a year. In the primary year itself, the plant carried out 12,000 cycles. Under his initiative, Atlas Cycles arose as India's biggest cycle maker by 1965.

 Janki Das Kapur surrendered the reins for his child Jai Dev, who worked pair with joint presidents Girish Kapur and Gautam Kapur. Before long, Atlas turned into the authority provider of bikes to the 1982 Asian Games in New Delhi. After it extended its creation abroad, the organization delivered more than 40 lakh bikes every year.

 In 2003, Girish Kapur had uncovered that the organization appreciated 28% of the bike market in India. He added, "Chart book is the solitary Indian bike organization with a total assembling unit whose in-house innovative work unit has been perceived by the branch of logical and modern examination, Union Ministry of Science and Technology. The organization has a cutting edge paint application unit at Sahibabad."

 The organization reasoning of 'representative strengthening' has gone far, to such an extent that much previous Atlas workers are devastated by the conclusion. Ashish Nagpal, who worked with the organization for a very long time and presently claims a cycling club called Cycle Sutra, said, "Having worked with Atlas as a brand head, the news was amazingly excruciating and unsettling and gave me restless evenings.

 The promotion missions of Atlas Cycles were essential in building up the brand as an easily recognized name. One of the underlying banners for the cycle advanced a utility serving item that came at a moderate cost. Also, an all-encompassing and rather reviving topic in the initial not many ads was that they advanced ladies riding these cycles. Not just that, these ladies were clad in saris, putting paid at the same time to the generalization of ladies not being lively and of saris being an obstruction to such exercises. As the brand kept on building its name throughout the long term, the focal point of its mission technique changed. From setting up itself as a utility-driven brand that was reasonable to all, it changed to advancing itself as the new experience sport bicycle on the square. Taking advantage of the soul of a radical without a reason, Atlas dispatched the Rebel cycle. The advertisement includes a little youngster who, exhausted of contending with his dad, takes a long ride across various landscapes on his Rebel bicycle. Then, at that point came the advancement bicycle otherwise called Atlas Concorde, which accompanied 10 pinion wheels, something that was incomprehensible up to that point. With numerous new brands of wheels coming into the market, Atlas needed to up its promoting game, which it did by getting on board with the brand represetative fad. In 2004, it marked entertainer Suniel Shetty and tennis champ Sania Mirza as brand envoys, and allotted a different financial plan of Rs 7 to 8 crores for this mission. While this closure was a shock to numerous purchasers, it had been bound to happen. The organization initially began making misfortunes in 2014, which brought about its Malanpur plant in Madhya Pradesh being closed.

 Financials: 

Face value of the company is 10 rs 

Book value of the company is 287rs

Debit on the company is 95rs crore

P/B is .71

Industry P/E is 13.81

 

Personal view on the company stock and future growth prospectus: 

Cycle industry is the hidden Gem in coming months and years. Govt. Has great interest for this industry. Chief minister of Haryana is also giving favour to this industry which is very good for this cycle industry. 

Atlas cycle is old is gold brand. Youngsters are attracting toward fancy cycles. As in western countries youngsters has great interest in fancy cycle and they love to drive Push bikes.  These days in India youngsters are making their own cycling groups. Atlas group is also making their good presence in insurance sector and financial sector. But the only concern with this company is debt. The company management is trying to find out the ways to reduce the debit of the company. This stock may be bit risky. Once you will get upmove in coming months then book profit.

Disclaimer: 

Please do your own research before making any investment. My view may differ from others. The company profile data may collected from the company website but the view on the company stock price is personal.